Growing number of crypto startups in Asia and Africa
Date: 2024-07-12 Author: Henry Casey Categories: IN WORLD
The first half of 2024 saw a significant increase in the share of cryptocurrency startups launched in Africa and Asia, reaching an all-time high.
Europe's dominance in the crypto startup market
Europe has overtaken the US and Canada to become the most popular region for launching cryptocurrency startups, according to data released by blockchain startup accelerator Alliance. In the first half of the year, it accounted for 31.4% of all new companies. Asia came in third with a share of 26.8%.
Africa also shows positive dynamics, increasing the number of startups to 5.2%. This is slightly lower than in Latin America, but significantly higher than in Oceania, which mainly includes Australia and New Zealand, where only 1.8% of the total number of startups were created in the first half of the year.
Alliance head Qiao Wang explains these indicators by uncertainty in crypto regulation in the United States, due to which companies prefer emerging markets. Wang cites examples of companies such as Phoenix Wallet and Wasabi Wallet, which left the US market this spring due to regulatory difficulties.
Startup Founder Profiles
It's interesting to note that, according to the Alliance, about 39% of startups were launched by a single founder, while 51% of new companies had a team of 2-5 people.
There has been a decrease in the number of startups founded by large technology companies by about 15% compared to 2021. A similar trend is observed among well-known universities, whose number of startups also decreased by a similar amount.
The rise in cryptocurrency startups in Asia and Africa signals a shift in interest to these regions, where emerging markets offer new opportunities amid regulatory uncertainties in more mature markets such as the US.
